United States Threatens To Impose Tariffs On Products From Nicaragua

As Supply Chain Dive reported, the Office of the U.S. Trade Representative (USTR) has issued a Federal Register notice that proposes to impose 100 percent tariffs and other trade penalties on imports from Nicaragua. The proposal comes after a Section 301 investigation into whether violations of labor rights, human rights, and the rule of law in the country negatively impact commerce in the United States. A

ccording to Supply Chain Dive, USTR is considering the following actions:

• Suspending the applications of all or some Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) benefits to Nicaragua, including tariff concessions and the cumulation of Nicaraguan content for other CAFTA-DR partners, immediately or phased in over a period of up to 12 months;
• Applying up to 100 percent tariffs on all Nicaraguan imports, immediately or phased in over a period of up to 12 months; and
• Applying up to 100 percent tariffs on some Nicaraguan imports immediately, with tariffs for selected sectors phased in over a period of up to 12 months.

The Office of the USTR requests that interested parties submit comments by Nov. 19, 2025. Companies that are interested in filing comments can find more information at this link. Read the report that led to this proposal at this link.